O'Sullivan, Paul (1999) Beat 'em or Join 'em? Export Subsidies versus International Research Joint Ventures in Oligopolistic Markets. Scandinavian Journal of Economics, 101. pp. 577-596. ISSN 0347-0520
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Abstract
We compare adversarial with cooperative industrial and trade policies in a dynamic oligopoly
game in which a home and foreign firm compete in R&D and output and, because of spillovers,
each firm benefits from the other's R&D. When the government can commit to an export
subsidy, such a policy raises welfare relative to cooperation, except when R&D is highly
effective and spillovers are near-complete. Without commitment, however, subsidisation may
yield welfare levels much lower than cooperation and lower even than free trade, though
qualifications to the dangers from no commitment are noted.
| Item Type: | Article |
|---|---|
| Keywords: | R&D spillovers; R&D cooperative agreements; RJVs (research joint ventures); strategic trade policy; export subsidies; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 8626 |
| Identification Number: | 10.1111/1467-9442.00174 |
| Depositing User: | Paul O'Sullivan |
| Date Deposited: | 16 Aug 2017 17:06 |
| Journal or Publication Title: | Scandinavian Journal of Economics |
| Publisher: | Wiley |
| Refereed: | Yes |
| Related URLs: | |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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